Emerging issues of corporate debt restructuring

Corporate Debt Restructuring is basically a mechanism by way of which company endeavors to reorganize its outstanding obligations. The CDR mechanism attempts to be a one-stop forum for lenders and creditors to arrive at mutually agreeable terms to secure their interests, however varied they may be. With the involvement of multiple lenders, there is every chance that any restructuring process would face obstacles and time delays. These are the very problems that the RBI's informal CDR system aims to address by setting up a framework for swift and timely action. Whether a case should be referred for restructuring or not is based upon thorough examination of facts & viability of the case. However, wherever the demand for restructuring is legitimate, and there is a good reason to believe that the corporation may be revived, it must be considered for restructuring. By way of CDR there is a hope of reservation of Viable corporate that are affected by certain internal & external factors CDR aims at minimizing the losses to creditors &other stakeholders through an orderly & coordinates restructuring programme to support continuing economic recovery.